5 Things to Know Before Starting a Business in UAE - Mavenconsults

The UAE is a highly diverse economic zone that offers some of the best opportunities for starting your own business. UAE is located in the center of the world and acts as a gateway between the Eastern and the Western parts of the world. And, Dubai and Sharjah are the two most prominent names that emerge in the minds of a majority of people for setting their own business. Further, both these places offer an exciting business landscape with more and more people and ex-pats investing here. Business setups in Sharjah and Dubai are the most preferred among others.

Dubai is an excellent choice and even better than Sharjah at the first sight. However, there is much more to explore and understand before opening a business in Dubai. While both places offer exciting business opportunities and have Free Zones and Mainland Zones, there are many vital differences when it comes to opening your business.

We share a detailed discussion of the differences between company setups in Dubai and Sharjah. If you are also planning to start your business in either one of them, we recommend you read it carefully. We also suggest consulting some reputed firms that offer business setup services UAE. These companies offer all types of consulting, documentation, and even legal services, such as business licenses in Dubai.

This way, you can start your business as an informed businessman and have the best understanding of the market scenario as well.

Also Read: 11 Similarities and Differences Between Dubai and London

Now, read on!

Sharjah for setting your business in UAE: Why?

Sharjah is one of the most developed Emirates in the Middle East and is a hub of trading activities in the UAE. It accounts for more than 45% of the entire country’s GDP, which is certainly a huge number and makes it a highly active place for all kinds of economic activities.

  • Another crucial fact is that it is the only city in UAE that has access to the ports in
  • Arabian Gulf (Eastern and Western coasts)
  • Access to the Indian Ocean
  • Direct pathway to North Africa

This makes Sharjah a place with a highly strategic location and makes it central for foreign investments as well. Foreign investors can set up many types of companies, such as limited liability companies (LLCs), joint-stock companies, branch offices, es or subsidiaries as well. Another important fact is that foreign investors can also enjoy sole proprietorships as well.

Also Read: Company Formation in Dubai: A Step by Step Complete Guide to Start a Business in Dubai

Setting up your business in Dubai – General Perspective

When we think about Dubai, we imagine a highly active market scenario with opportunities for all types of investors and entrepreneurs and a favorable atmosphere for all types of businesses. We think that we can open businesses in Free Zones and enjoy tax-free business with sole proprietorships.

However, what we don’t realize are the following:

  • Cost of running an office
  • A highly competitive and overcrowded market space
  • High sponsorship costs
  • High costs of living
  • The ability to choose any name for your business
  • Third-party approvals
  • Also Read: How Document Attestation Impacts new Business setup in the UAE